diff --git a/.circleci/config.yml b/.circleci/config.yml
index c49af2a063b5..b7266a42c698 100644
--- a/.circleci/config.yml
+++ b/.circleci/config.yml
@@ -341,30 +341,6 @@ jobs:
           paths:
             - sandbox/*/bench/*.json
             - sandbox/*/storybook-static
-  build-test-sandboxes:
-    parameters:
-      parallelism:
-        type: integer
-    executor:
-      class: large
-      name: sb_node_16_browsers
-    parallelism: << parameters.parallelism >>
-    steps:
-      - git-shallow-clone/checkout_advanced:
-          clone_options: '--depth 1 --verbose'
-      - attach_workspace:
-          at: .
-      - run:
-          name: Building Sandboxes
-          command: yarn task --task test-build --template $(yarn get-template --cadence << pipeline.parameters.workflow >> --task build) --no-link --start-from=never --junit
-      - report-workflow-on-failure:
-          template: $(yarn get-template --cadence << pipeline.parameters.workflow >> --task build)
-      - store_test_results:
-          path: test-results
-      - persist_to_workspace:
-          root: .
-          paths:
-            - sandbox/*/bench/test-build.json
   test-runner-production:
     parameters:
       parallelism:
@@ -523,15 +499,11 @@ workflows:
           requires:
             - unit-tests
       - create-sandboxes:
-          parallelism: 12
+          parallelism: 14
           requires:
             - build
-      - build-test-sandboxes:
-          parallelism: 12
-          requires:
-            - create-sandboxes
       - build-sandboxes:
-          parallelism: 12
+          parallelism: 14
           requires:
             - create-sandboxes
       - chromatic-sandboxes:
@@ -551,10 +523,9 @@ workflows:
           requires:
             - build-sandboxes
       - bench:
-          parallelism: 3
+          parallelism: 5
           requires:
             - build-sandboxes
-            - build-test-sandboxes
       # TODO: reenable once we find out the source of flakyness
       # - test-runner-dev:
       #     requires:
@@ -584,15 +555,11 @@ workflows:
           requires:
             - unit-tests
       - create-sandboxes:
-          parallelism: 21
+          parallelism: 23
           requires:
             - build
-      - build-test-sandboxes:
-          parallelism: 21
-          requires:
-            - create-sandboxes
       - build-sandboxes:
-          parallelism: 21
+          parallelism: 23
           requires:
             - create-sandboxes
       - chromatic-sandboxes:
@@ -612,10 +579,9 @@ workflows:
           requires:
             - build-sandboxes
       - bench:
-          parallelism: 3
+          parallelism: 5
           requires:
             - build-sandboxes
-            - build-test-sandboxes
       # TODO: reenable once we find out the source of flakyness
       # - test-runner-dev:
       #     parallelism: 4
@@ -643,18 +609,14 @@ workflows:
           requires:
             - build
       - create-sandboxes:
-          parallelism: 36
+          parallelism: 38
           requires:
             - build
       # - smoke-test-sandboxes: # disabled for now
       #     requires:
       #       - create-sandboxes
-      - build-test-sandboxes:
-          parallelism: 36
-          requires:
-            - create-sandboxes
       - build-sandboxes:
-          parallelism: 36
+          parallelism: 38
           requires:
             - create-sandboxes
       - chromatic-sandboxes:
diff --git a/code/addons/docs/README.md b/code/addons/docs/README.md
index 02c97503b313..025ff9bbd697 100644
--- a/code/addons/docs/README.md
+++ b/code/addons/docs/README.md
@@ -146,7 +146,6 @@ export default {
         jsxOptions: {},
         csfPluginOptions: null,
         mdxPluginOptions: {},
-        transcludeMarkdown: true,
       },
     },
   ],
@@ -157,16 +156,9 @@ export default {
 
 `csfPluginOptions` is an object for configuring `@storybook/csf-plugin`. When set to `null` it tells docs not to run the `csf-plugin` at all, which can be used as an optimization, or if you're already using `csf-plugin` in your `main.js`.
 
-The `transcludeMarkdown` option enables mdx files to import `.md` files and render them as a component.
 
-```mdx
-import { Meta } from '@storybook/addon-docs';
-import Changelog from '../CHANGELOG.md';
+> With the release of version 7.0, it is no longer possible to import `.md` files directly into Storybook using the `transcludeMarkdown` [option](https://github.com/storybookjs/storybook/blob/next/MIGRATION.md#importing-plain-markdown-files-with-transcludemarkdown-has-changed). Instead, we recommend using the [`Markdown`](https://storybook.js.org/docs/react/api/doc-block-markdown) Doc Block for importing Markdown files into your Storybook documentation.
 
-<Meta title="Changelog" />
-
-<Changelog />
-```
 
 ## TypeScript configuration
 
diff --git a/code/addons/interactions/src/preview.ts b/code/addons/interactions/src/preview.ts
index d393a0aefb20..cee79b7a2dd9 100644
--- a/code/addons/interactions/src/preview.ts
+++ b/code/addons/interactions/src/preview.ts
@@ -21,7 +21,6 @@ const fn = JestMock.fn.bind(JestMock);
 // Aliasing `fn` to `action` here, so we get a more descriptive label in the UI.
 const { action } = instrument({ action: fn }, { retain: true });
 const channel = addons.getChannel();
-const seen = new Set<any>();
 const spies: any[] = [];
 
 channel.on(FORCE_REMOUNT, () => spies.forEach((mock) => mock?.mockClear?.()));
@@ -30,8 +29,6 @@ channel.on(STORY_RENDER_PHASE_CHANGED, ({ newPhase }) => {
 });
 
 const addSpies = (id: string, val: any, key?: string): any => {
-  if (seen.has(val)) return val;
-  seen.add(val);
   try {
     if (Object.prototype.toString.call(val) === '[object Object]') {
       // We have to mutate the original object for this to survive HMR.
@@ -42,7 +39,8 @@ const addSpies = (id: string, val: any, key?: string): any => {
     if (Array.isArray(val)) {
       return val.map((item, index) => addSpies(id, item, `${key}[${index}]`));
     }
-    if (typeof val === 'function' && val.isAction) {
+    // eslint-disable-next-line no-underscore-dangle
+    if (typeof val === 'function' && val.isAction && !val._isMockFunction) {
       Object.defineProperty(val, 'name', { value: key, writable: false });
       Object.defineProperty(val, '__storyId__', { value: id, writable: false });
       const spy = action(val);
diff --git a/code/lib/cli/src/sandbox-templates.ts b/code/lib/cli/src/sandbox-templates.ts
index f6a74983aa71..2dd4edb620f9 100644
--- a/code/lib/cli/src/sandbox-templates.ts
+++ b/code/lib/cli/src/sandbox-templates.ts
@@ -67,6 +67,7 @@ export type Template = {
   modifications?: {
     skipTemplateStories?: boolean;
     mainConfig?: Partial<StorybookConfig>;
+    testBuild?: boolean;
     disableDocs?: boolean;
   };
   /**
@@ -559,7 +560,27 @@ const benchTemplates = {
     },
     skipTasks: ['e2e-tests-dev', 'test-runner', 'test-runner-dev', 'e2e-tests', 'chromatic'],
   },
-} satisfies Record<`bench/${string}`, Template & { isInternal: true }>;
+  'bench/react-vite-default-ts-test-build': {
+    ...baseTemplates['react-vite/default-ts'],
+    name: 'Bench (react-vite/default-ts, test-build)',
+    isInternal: true,
+    modifications: {
+      skipTemplateStories: true,
+      testBuild: true,
+    },
+    skipTasks: ['e2e-tests-dev', 'test-runner', 'test-runner-dev', 'e2e-tests', 'chromatic'],
+  },
+  'bench/react-webpack-18-ts-test-build': {
+    ...baseTemplates['react-webpack/18-ts'],
+    name: 'Bench (react-webpack/18-ts, test-build)',
+    isInternal: true,
+    modifications: {
+      skipTemplateStories: true,
+      testBuild: true,
+    },
+    skipTasks: ['e2e-tests-dev', 'test-runner', 'test-runner-dev', 'e2e-tests', 'chromatic'],
+  },
+} satisfies Record<string, Template & { isInternal: true }>;
 
 export const allTemplates: Record<TemplateKey, Template> = {
   ...baseTemplates,
@@ -580,6 +601,8 @@ export const normal: TemplateKey[] = [
   'bench/react-vite-default-ts',
   'bench/react-webpack-18-ts',
   'bench/react-vite-default-ts-nodocs',
+  'bench/react-vite-default-ts-test-build',
+  'bench/react-webpack-18-ts-test-build',
 ];
 export const merged: TemplateKey[] = [
   ...normal,
diff --git a/code/lib/core-server/src/presets/common-preset.ts b/code/lib/core-server/src/presets/common-preset.ts
index 347713e03aaf..39511aef6be4 100644
--- a/code/lib/core-server/src/presets/common-preset.ts
+++ b/code/lib/core-server/src/presets/common-preset.ts
@@ -17,7 +17,7 @@ import type {
   StorybookConfig,
 } from '@storybook/types';
 import { printConfig, readConfig, readCsf } from '@storybook/csf-tools';
-import { join } from 'path';
+import { join, isAbsolute } from 'path';
 import { dedent } from 'ts-dedent';
 import fetch from 'node-fetch';
 import type { Channel } from '@storybook/channels';
@@ -61,15 +61,16 @@ export const favicon = async (
     const lists = await Promise.all(
       statics.map(async (dir) => {
         const results = [];
-        const relativeDir = staticDirsValue
-          ? getDirectoryFromWorkingDir({
-              configDir: options.configDir,
-              workingDir: process.cwd(),
-              directory: dir,
-            })
-          : dir;
-
-        const { staticPath, targetEndpoint } = await parseStaticDir(relativeDir);
+        const normalizedDir =
+          staticDirsValue && !isAbsolute(dir)
+            ? getDirectoryFromWorkingDir({
+                configDir: options.configDir,
+                workingDir: process.cwd(),
+                directory: dir,
+              })
+            : dir;
+
+        const { staticPath, targetEndpoint } = await parseStaticDir(normalizedDir);
 
         if (targetEndpoint === '/') {
           const url = 'favicon.svg';
diff --git a/code/lib/core-server/src/utils/server-statics.ts b/code/lib/core-server/src/utils/server-statics.ts
index 19d569cfcc06..ca0f8c55e354 100644
--- a/code/lib/core-server/src/utils/server-statics.ts
+++ b/code/lib/core-server/src/utils/server-statics.ts
@@ -6,7 +6,7 @@ import chalk from 'chalk';
 import type { Router } from 'express';
 import express from 'express';
 import { pathExists } from 'fs-extra';
-import path, { basename } from 'path';
+import path, { basename, isAbsolute } from 'path';
 import isEqual from 'lodash/isEqual.js';
 
 import { dedent } from 'ts-dedent';
@@ -30,14 +30,15 @@ export async function useStatics(router: Router, options: Options) {
     await Promise.all(
       statics.map(async (dir) => {
         try {
-          const relativeDir = staticDirs
-            ? getDirectoryFromWorkingDir({
-                configDir: options.configDir,
-                workingDir: process.cwd(),
-                directory: dir,
-              })
-            : dir;
-          const { staticDir, staticPath, targetEndpoint } = await parseStaticDir(relativeDir);
+          const normalizedDir =
+            staticDirs && !isAbsolute(dir)
+              ? getDirectoryFromWorkingDir({
+                  configDir: options.configDir,
+                  workingDir: process.cwd(),
+                  directory: dir,
+                })
+              : dir;
+          const { staticDir, staticPath, targetEndpoint } = await parseStaticDir(normalizedDir);
 
           // Don't log for the internal static dir
           if (!targetEndpoint.startsWith('/sb-')) {
diff --git a/scripts/task.ts b/scripts/task.ts
index 6cf4fa7e9993..897957653413 100644
--- a/scripts/task.ts
+++ b/scripts/task.ts
@@ -20,7 +20,7 @@ import { sandbox } from './tasks/sandbox';
 import { syncDocs } from './tasks/sync-docs';
 import { dev } from './tasks/dev';
 import { smokeTest } from './tasks/smoke-test';
-import { build, testBuild } from './tasks/build';
+import { build } from './tasks/build';
 import { serve } from './tasks/serve';
 import { testRunnerBuild } from './tasks/test-runner-build';
 import { testRunnerDev } from './tasks/test-runner-dev';
@@ -103,7 +103,6 @@ export const tasks = {
   dev,
   'smoke-test': smokeTest,
   build,
-  'test-build': testBuild,
   serve,
   'test-runner': testRunnerBuild,
   'test-runner-dev': testRunnerDev,
diff --git a/scripts/tasks/build.ts b/scripts/tasks/build.ts
index 09324edac58d..099a98ee1a90 100644
--- a/scripts/tasks/build.ts
+++ b/scripts/tasks/build.ts
@@ -12,10 +12,14 @@ export const build: Task = {
   async ready({ builtSandboxDir }) {
     return pathExists(builtSandboxDir);
   },
-  async run({ sandboxDir }, { dryRun, debug }) {
+  async run({ sandboxDir, template }, { dryRun, debug }) {
     const start = now();
 
-    await exec(`yarn build-storybook --quiet`, { cwd: sandboxDir }, { dryRun, debug });
+    await exec(
+      `yarn build-storybook --quiet ${template.modifications?.testBuild ? '--test' : ''}`,
+      { cwd: sandboxDir },
+      { dryRun, debug }
+    );
 
     const buildTime = now() - start;
     const dir = join(sandboxDir, 'storybook-static');
@@ -48,49 +52,3 @@ export const build: Task = {
     );
   },
 };
-
-export const testBuild: Task = {
-  description: 'Build the static version of the sandbox optimized for testing purposes',
-  dependsOn: ['sandbox'],
-  async ready({ builtSandboxDir }) {
-    return pathExists(builtSandboxDir);
-  },
-  async run({ sandboxDir }, { dryRun, debug }) {
-    const start = now();
-
-    await exec(`yarn build-storybook --test --quiet`, { cwd: sandboxDir }, { dryRun, debug });
-
-    const testBuildTime = now() - start;
-    const dir = join(sandboxDir, 'storybook-static');
-    const getSize = promisify(dirSize);
-    const testBuildSize = await getSize(dir);
-    const testBuildSbAddonsSize = await getSize(join(dir, 'sb-addons'));
-    const testBuildSbCommonSize = await getSize(join(dir, 'sb-common-assets'));
-    const testBuildSbManagerSize = await getSize(join(dir, 'sb-manager'));
-    const testBuildSbPreviewSize = await getSize(join(dir, 'sb-preview'));
-    const testBuildPrebuildSize =
-      testBuildSbAddonsSize +
-      testBuildSbCommonSize +
-      testBuildSbManagerSize +
-      testBuildSbPreviewSize;
-
-    const testBuildStaticSize = await getSize(join(dir, 'static')).catch(() => 0);
-    const testBuildPreviewSize = testBuildSize - testBuildPrebuildSize - testBuildStaticSize;
-
-    await saveBench(
-      'test-build',
-      {
-        testBuildTime,
-        testBuildSize,
-        testBuildSbAddonsSize,
-        testBuildSbCommonSize,
-        testBuildSbManagerSize,
-        testBuildSbPreviewSize,
-        testBuildStaticSize,
-        testBuildPrebuildSize,
-        testBuildPreviewSize,
-      },
-      { rootDir: sandboxDir }
-    );
-  },
-};